Why More Young Adults Use Credit Cards
Why More Young Adults Use Credit Cards
More and more young adults are swiping credit cards these days, and businesses that want to take advantage of this trend can do so profitably with Swipe4Free

Why Young Adults Are Flocking to Credit Cards in Greater Numbers

Take a trip to any mall in America and you’ll see that many of the shoppers are young adults. This segment of shoppers likes to spend money, and often the money being spent isn’t even theirs.

According to a Bankrate survey from January of 2021, 50 percent of individuals ages 25 to 31 own at least one credit card. That survey also found that over a third of individuals ages 18 to 24 also have at least one credit card. These are all percentage increases, as in 2016, Bankrate found that just 33 percent of individuals ages 18 to 29 owned a credit card.

There are a few key reasons why young adults are flocking to credit cards in greater numbers these days, and these are discussed in the following section.

Benefits of Using Credit Cards for Young Adults

One-Time Bonuses


One-time bonuses are attractive to young adults for a variety of reasons. Some view one-time bonuses as a reward for spending money. To these individuals, the $150 (or more) bonus is like a gift from the credit card company; a thank you for spending their money and paying it back.

Others view the one-time bonus as a deduction for a purchase. In other words, if you’re planning to buy a $600 television as the first purchase on a new credit card—and there’s a one-time bonus of $200 if you spend over $500—you’re really only spending $400, as $200 will be credited back just because you spent the money.

Cash-Back Incentives


The cash-back incentive is similar to the one-time bonus incentive. Cash-back, however, is not a one-time reward, but rather a reoccurring reward that’s percentage-based. These days, credit cards offer anywhere from 1 percent to 3 percent cash-back on all purchases, and often there are special offers that guarantee even higher cash-back percentages.



Young adults like credit cards that utilize points systems, as the points a cardholder accrues can eventually be redeemed for travel, gift cards, or merchandise. If an individual is routinely spending at a particular store, they should apply for a store credit card, as this way they can take advantage of the points system and get more from spending.



Credit cards aren’t as prone to fraud as debit cards are, and here again, this is a reason why young adults prefer the former over the latter. Young adults do a lot of shopping online, and therefore they need the added protection that credit cards afford.

Moreover, if a merchant can do NFC payments, a credit cardholder can use their card without ever swiping. Or, if the card is linked to their smartphone, they can use it without ever taking out the physical card.

How Businesses Can Take Advantage of This Trend

Businesses that do credit card processing can take advantage of this trend, and now it’s possible to do so without spending thousands on transaction fees. By partnering with Swipe4Free and using their credit card machines, a business can now pass on credit card transaction fees to their customers, and they can use the money saved to offset other rising costs. No wonder more and more businesses are eliminating transaction fees with Swipe4Free.

About Swipe4Free


Swipe4Free is the nation’s number one cash discount and surcharging platform. Founded by Leo Vartanov and Chris Benabu in 2015, Swipe4Free allows merchants to pass their credit card processing fees along to the customer by implementing a 4% non-cash charge to all customers who pay with credit cards. The non-cash charge is legal within all 50 states and is automatically waived when customers pay with cash or a gift card. The customers are made aware of the non-cash charge with signage and stickers that we provide for your place of business. You can place the signage on the door of the business as well as on/near the register where customers pay. We also provide language for online businesses to make customers aware of the non-cash charge. This 4% non-cash charge eliminates all your credit card processing fees, allowing you to keep 100% of the profits per transaction made with credit cards. Swipe4Free uses the 4% non-cash charge to cover interchange costs, authorization costs, transaction costs, and support for our merchants.